DRDGOLD Limited (DRD): Business Model Canvas [Dec-2025 Updated]

You're looking at a gold miner that doesn't dig deep shafts; instead, they're cleaning up the past to fund the future, and honestly, the Business Model Canvas for DRDGOLD Limited shows a defintely fascinating engine: turning massive gold-bearing tailings reserves-like the 120 million tonnes at Ergo-into consistent cash flow, which is why their operating profit jumped 69% in FY2025 on R7.88 billion in revenue. They've even built a 60 MW solar farm to slash energy costs, showing a real commitment to low-cost, low-risk production while delivering an 18-year unbroken dividend track record, so you'll want to see how this unique, environmentally-focused strategy holds up against the near-term risks of executing their massive Vision 2028 expansion; check out the full breakdown below.

DRDGOLD Limited (DRD) - Canvas Business Model: Key Partnerships

Controlling shareholder Sibanye-Stillwater

• Sibanye-Stillwater holds a 50.1% equity interest in DRDGOLD Limited, securing the majority shareholding since January 2020.
• The initial transaction in August 2018 involved Sibanye-Stillwater trading selected assets from its West Rand Tailings Retreatment Project (FWGR) for a 38.05% shareholding.

Nedbank as a key financial partner

DRDGOLD Limited remained debt-free as at June 30, 2025. The facilities with Nedbank were undrawn against the capital program.

Rand Refinery for gold processing and sales channel access

• The fair value of DRDGOLD Limited's 11.3% interest in Rand Refinery was estimated at R302.0 million at June 30, 2025.
• This value was R166.8 million at June 30, 2024.
• A Rand Refinery dividend of ZAR132.8 million was included in finance income for the six months ended December 31, 2024.
• The forecast average gold price used by Rand Refinery for budgeting as at June 30, 2025, was R1,620,480/kg.

Contractors for large-scale earthmoving and infrastructure development (Vision 2028)

Vision 2028 is the growth strategy centered around five capital projects requiring approximately R7.8 billion in investment.

• At the Far West Gold Recoveries (FWGR) Regional Tailings Storage Facility (RTSF), more than 2.5 million cubic metres of soil have been moved for the starter wall since June 2024.
• Pipeline construction linking the Ergo Plant with the Daggafontein Tailings Storage Facility (TSF) has reached 14.2 kilometres out of a total of 41.3 kilometres planned.
• The Driefontein 2 plant expansion, part of Phase II, aims to double throughput to 1.2 million tons/month by 2026.
• The overall Vision 2028 target is to expand group throughput to 3 million tonnes a month and increase gold output to six tonnes (or 200,000oz) a year.

Potential offshore miners for international tailings retreatment expansion

DRDGOLD Limited is in early-stage planning to expand internationally by establishing partnerships with miners interested in mining tailings.

DRDGOLD Limited (DRD) - Canvas Business Model: Key Activities

You're looking at the core engine driving DRDGOLD Limited's performance right now, which is all about maximizing value from what others left behind. It's a high-volume game, but the focus is shifting to efficiency because the raw material quality isn't what it used to be.

High-volume, low-cost surface gold tailings retreatment remains the central activity. DRDGOLD Limited processed a Group tonnage throughput of 25.6 Mt for the year ended June 30, 2025, which was a 15% increase over the 22.3 Mt treated in FY2024. This higher volume was necessary because the average yield dropped by 16%, moving from 0.225 g/t in FY2024 to 0.189 g/t in FY2025. The average Rand gold price received was R1,632,275/kg, a 31% jump, which helped offset the lower yield and resulted in Group revenue of R7,878.2 million for FY2025. Cash operating costs for the year were R4,372.7 million.

The company is actively executing its R7.8 billion Vision 2028 capital expansion projects. This medium-term forecast is designed to secure a longer life-of-mine. For FY2025, total capital expenditure was R2,254.9 million, with growth capex specifically rising 9% to R781.1 million, mainly for the Far West Gold Recoveries Phase II project. The Vision 2028 goal is to reach a throughput of 3 million tonnes a month by 2028, targeting gold output of six tonnes (200,000 oz) a year. Progress on the Far West Gold Recoveries (FWGR) Regional Tailings Storage Facility (RTSF) construction shows 14.2 kilometres of slurry and return water pipelines completed out of a total of 41.3 planned kilometres.

A major supporting activity is operating the 60 MW solar farm and 187 MW battery storage system at Ergo. This renewable energy infrastructure, with a capital cost around R3.1 billion, is key to cost resilience. The 60 MW PV facility and 187 MWh BESS are integrated into the grid. This system saved the company an estimated ZAR 108 million annually through an 16% reduction in energy costs in FY2025. From June 2024 to February 2025, the solar plant produced 47 GWh of energy.

Environmental rehabilitation and tailings dam management are integrated into the long-term planning. The Withok tailings dam is designed for 310-million tons of capacity. Furthermore, the Crown Complex was reclassified to a Probable Mineral Reserve of 272.0Mt @ 0.234g/t as of June 30, 2025. Work is advancing to resume deposition onto the Daggafontein TSF by the first quarter of the 2027 financial year.

Continuous process optimization to counter declining average yield is critical for profitability. The yield decline in FY2025 was significant, but early signs of success are visible. Here's a quick look at the throughput versus yield dynamic:

The Q1 FY2026 update showed a slight positive turn, with yield improving by 0.008 g/t over the previous quarter to reach 0.184 g/t, helping production rise 2% to 1,191 kg despite a 3% drop in throughput for that quarter.

The company's focus areas for operational execution include:

• Expanding Far West Gold Recoveries (FWGR) throughput to 1.2 million tons/month by 2026.
• Extending the Ergo operation's lifespan to beyond 2040.
• Achieving the Vision 2028 target of 3 million tons/month.
• Maintaining a debt-free balance sheet, having generated R1.2 billion in free cash inflow in FY2025.
• Managing All-in Sustaining Costs (AISC) per kilogram, which were R1,066,287 in Q1 FY2026.

Finance: draft 13-week cash view by Friday.

DRDGOLD Limited (DRD) - Canvas Business Model: Key Resources

You're looking at the core assets that allow DRDGOLD Limited (DRD) to operate its unique tailings retreatment business, which is all about turning old waste into new value. These aren't just physical assets; they include the financial strength to back the strategy.

The foundation of the resource base is massive. DRDGOLD Limited (DRD) controls significant gold-bearing tailings reserves, which are essentially their raw material inventory. Specifically, for the Ergo operation, approximately 120 million tonnes of the total remaining reserve is planned to be processed via the Daggafontein Tailings Storage Facility (TSF). To put that in perspective, the Crown Complex alone, included in the Life of Mine plan, holds a Probable Mineral Reserve of 272.0Mt at a grade of 0.234g/t as of 30 June 2025.

These reserves feed two primary large-scale processing hubs, which represent significant fixed capital investment and processing capability:

• Ergo Plant capacity is around 1.7Mtpm (Million tonnes per month), with the Knights milling plant adding up to 180ktpm (thousand tonnes per month).
• Far West Gold Recoveries (FWGR) Phase II is designed to double its monthly throughput from 600 000 tonnes to 1.2 million tonnes per month.

The company has also heavily invested in energy self-sufficiency to control a major operating cost. The 60 MW solar photovoltaic (PV) power plant at Ergo was commissioned in November 2024. By the end of FY2025, this facility was functioning at 97% of its designed capacity. Management referred to this as a R3-billion prepaid electricity facility.

The proprietary metallurgical expertise in tailings retreatment is what makes the processing of these specific resources viable. This expertise allowed DRDGOLD Limited (DRD) to process a total Group throughput of 25.6 Mt in FY2025, up 15% from the prior year.

This operational strength is underpinned by a very solid financial position. As of the close of the 2025 financial year (30 June 2025), DRDGOLD Limited (DRD) was debt-free. The balance sheet strength is evident in its liquidity:

This strong cash position of over R1.3 billion provided the flexibility to declare a final dividend of 40 SA cents per share, which was double that of the previous year.

DRDGOLD Limited (DRD) - Canvas Business Model: Value Propositions

You're looking at DRDGOLD Limited's value proposition, and honestly, it's built on a foundation that sidesteps the typical risks of deep-level gold mining. Their core offering is recovering gold from surface tailings, which is inherently a lower-risk operation than sinking new shafts.

This operational choice directly supports a consistent return profile for shareholders, a key differentiator in the sector.

• The company has maintained an unbroken dividend payment record for 18 consecutive years as of late 2025.
• The final cash dividend declared for FY2025 was 40 South African cents per share (cps), which was double the FY2024 final dividend.
• The interim dividend for H1 FY2025 was 30 SA cents per share, a 50% increase over the H1 FY2024 interim dividend of 20 SA cents per share.

A significant part of the DRDGOLD Limited value proposition is the environmental outcome; it's not just an obligation, it's a core business function. They are actively reversing the environmental legacy of historical mining.

Here are some of the latest reported figures related to this core outcome, primarily from the FY2024 reporting period, which informs the FY2025 strategy:

The business model shows high financial leverage to the gold price, meaning small changes in the gold price translate to larger changes in profit, which you can see clearly in the FY2025 results.

The average Rand gold price received increased by 31% to R1,632,275/kg in FY2025. This price strength flowed directly into the bottom line:

• Group operating profit for FY2025 surged by 69% to R3,523.6 million (up from R2,081.3 million in FY2024).
• Group revenue increased by 26% to R7,878.2 million in FY2025 (from R6,239.7 million in FY2024).
• The operating margin expanded from 33.4% to 44.7% in FY2025.

This financial strength is delivered while maintaining a cost-efficient operation, largely due to strategic capital investment in renewable energy. The commissioning of the solar plant and Battery Energy Storage System (BESS) at Ergo in November 2024 was a major value driver.

DRDGOLD Limited achieved an estimated 16% cut in energy costs via the solar power initiative, equating to an annual saving of R108 million. The solar plant capacity is 60MW. Furthermore, the company ended FY2025 completely debt-free, with cash and cash equivalents increasing by 150% to R1,306.2 million.

DRDGOLD Limited (DRD) - Canvas Business Model: Customer Relationships

You're looking at how DRDGOLD Limited manages its key relationships across its stakeholder base, which is quite diverse, spanning from shareholders demanding returns to local communities needing social upliftment. It's a delicate balance for a surface miner like DRDGOLD Limited, which essentially turns environmental liabilities into shareholder value.

Investor relations focused on transparency and consistent dividend payouts.

DRDGOLD Limited focuses on clear communication, especially around financial performance that directly impacts shareholder returns. For the financial year ended 30 June 2025, the company reported strong results, with Revenue reaching R7,878.2 million and Operating Profit jumping to R3,523.6 million. This performance allowed the Board to declare a final cash dividend for FY2025 of 40 South African cents per share (cps), which was a 100% increase, or double, the final dividend of 20 SA cps paid in FY2024. This commitment to payouts is grounded in a strong balance sheet; at 30 June 2025, DRDGOLD Limited held R1,306.2 million in cash and cash equivalents and remained debt-free. The total annual dividend for FY2025 amounted to 70 SA cps. Transparency is also evident in the reporting of earnings, with Headline Earnings Per Share (HEPS) for FY2025 reaching 260.6 SA cps, a 69% increase over the prior year.

The relationship with the equity holders is quantified by these key financial metrics:

• Final Cash Dividend Declared (FY2025): 40 SA cps.
• Total Annual Dividend (FY2025): 70 SA cps.
• Ordinary Shares in Issue (as of August 2025): 864,588,711.
• Net Local Dividend per Share (after DWT): 32 SA cps.
• Expected Net ADR Dividend: Approximately 18 US cents per share.

Direct, transactional relationship with the gold refiner/buyer.

The core transactional relationship for DRDGOLD Limited's primary product is highly direct and singular. The company recovers gold from surface tailings and then sells the resulting product exclusively through one channel. This is a classic business-to-business (B2B) relationship focused purely on the volume and purity of the final metal.

The entire revenue stream hinges on this transactional link. It's a business of scale, not grade, so throughput matters immensely to this relationship.

Proactive community engagement for social license to operate.

Maintaining the social license to operate is critical, especially when dealing with legacy environmental sites in densely populated areas like the Witwatersrand Basin. DRDGOLD Limited demonstrates this through measurable social investment. The Total Social and Economic Spend for FY2025 was reported at R55.4 million, an increase from R51.3 million in 2024. This spend is strategically focused on improving the quality of life for surrounding communities, which is a core value for the company. Furthermore, the commitment to environmental remediation, which directly benefits the community's land use, is quantified by rehabilitation progress. In FY2025, applications in respect of 76ha of rehabilitated land were lodged with the NNR for approval.

Financial accountability demonstrated by internal funding of R2.3 billion capex.

The company shows financial discipline by prioritizing self-funding for its massive growth plans, which underpins its long-term relationship with shareholders. Operational cash flow in FY2025 generated a free cash inflow of R1,227.6 million. This strong cash generation allowed operational cash flow to fund approximately R2.3 billion to be re-invested in capital projects, specifically the 'Big five' projects underpinning the Vision 2028 strategy, without drawing from the available R2 billion Nedbank loan facility. The total capital expenditure for FY2025 was R2,254.9 million. This investment is part of a larger, medium-term commitment estimated at R7.8 billion to achieve the Vision 2028 goal of increasing throughput to 3 million tonnes per month.

DRDGOLD Limited (DRD) - Canvas Business Model: Channels

You're looking at how DRDGOLD Limited (DRD) gets its product-refined gold-to the market and communicates with its investors as of late 2025. It's a straightforward setup, heavily reliant on established financial infrastructure and a key related party for the final sale.

Primary gold sales channel through the Rand Refinery.

The gold produced by DRDGOLD Limited is sold through the Rand Refinery, which handles the final refinement and administration of the gold bars. Rand Refinery is a related party due to Sibanye-Stillwater's shareholding in it. The financial performance of this channel is highly sensitive to the Rand US Dollar exchange rate and the commodity price of gold itself. For the fiscal year ended 30 June 2025 (FY2025), the Group sold 4,818 kg of gold, a 3% decrease from the 4,989 kg sold in FY2024. However, the average Rand gold price received jumped 31% to R1,632,275/kg in FY2025, up from R1,248,679/kg the prior year, which drove a 26% increase in Group revenue to R7,878.2 million.

Here's a quick look at the sales metrics around that time:

The average price received in the first quarter of FY2026, R1,943,398 per kilogram, shows the continuation of a strong pricing environment. The Group did not enter into any hedging arrangements during FY2025.

Primary listing on the JSE (Johannesburg Stock Exchange).

DRDGOLD Limited maintains its primary listing on the Main Board of the Johannesburg Stock Exchange, trading under the share code DRD. As of May 7, 2025, the company celebrated 130 years of uninterrupted listing on the JSE. The market capitalization as of June 30, 2025, stood at R20,517 million.

Secondary listings on the NYSE and A2X for global investor access.

To cater to a broader investor base, DRDGOLD uses several other venues for trading its securities. This helps with global investor access, even though the underlying shares are ordinary shares, not American Depository Receipts (ADRs) on the NYSE (where one ADR reflects 10 ordinary shares).

• Primary Listing: JSE (Share Code: DRD)
• Secondary Listing: NYSE (Trading Symbol: DRD)
• Secondary Listing: A2X (Share Code: DRD). DRDGOLD listed on A2X in September 2025.
• Traded on Regulated Unofficial Market: Frankfurt Stock Exchange and the Berlin and Stuttgart OTC markets.

Annual Integrated Report and ESG Fact Sheet for stakeholder communication.

Stakeholder communication is anchored by the release of the Annual Integrated Report (AIR) and the Annual Financial Statements. The AIR for the year ended 30 June 2025 was made available on October 28, 2025. The company also provided an update on its ESG focus, with total environmental spend increasing by 11% to R45.3 million in FY2025. The Board declared a final cash dividend for FY2025 of 40 South African cents per share (cps), which was double the dividend declared for FY2024 (20 cps). This was supported by Headline Earnings of 260.6 South African cents per share for FY2025.

DRDGOLD Limited (DRD) - Canvas Business Model: Customer Segments

You're looking at the core groups DRDGOLD Limited serves, the ones whose capital and engagement keep the tailings retreatment wheels turning. It's a mix of money managers, environmentally conscious capital, and the physical buyers of the end product.

Global institutional and retail investors seeking gold exposure and income

This group is heavily weighted toward large institutions. For the quarter ended September 30, 2025, DRDGOLD Limited reported gold sold of 1,158 kg, contributing to a revenue of R2,254.9-million for that quarter alone. For the full Fiscal Year 2025, group revenue hit R7,878.2 million. The income appeal is clear: the final 2025 cash dividend was doubled to 40 cents per share, reflecting the strong cash flow, which included ZAR 1.2 billion in free cash flow for FY2025. The company maintained a debt-free balance sheet as of September 30, 2025.

The ownership structure shows a clear preference for institutional backing. Here's the quick math on who holds the shares as of the latest available data:

What this estimate hides is the concentration at the top; holders of 1,000,001 and more shares represent 91.46% of the total share count. That's where the big money sits.

ESG-focused investors valuing environmental rehabilitation and renewable energy

This segment is attracted by DRDGOLD Limited's explicit commitment to environmental stewardship, which directly impacts long-term operational stability. The company successfully commissioned a 60 MW solar plant at Ergo, which contributed to 16% energy cost cuts in FY2025. Total capital expenditure for FY2025 was ZAR 2.5 billion, with 70% of that allocated to solar infrastructure and the Regional Tailings Storage Facility (RTSF). The focus on reversing ecological damage through rehabilitation is a core strategic area. The provision for environmental rehabilitation remains one of the company's critical accounting estimates, showing its financial commitment to this area.

Gold bullion buyers (refineries, central banks, industrial users)

These customers purchase the physical output. For the quarter ended September 30, 2025, DRDGOLD Limited sold 1,158 kg of gold, or 37,231 oz. This was achieved despite a 3% decrease in ore milled to 6,481,000 tonnes processed, showing that sales are driven by recovery efficiency rather than sheer volume. The average price received for this gold in that quarter was R1,943,398 per kilogram. For the full FY2025, total gold sold was 4,818kg.

South African government and communities benefiting from environmental clean-up

This segment is engaged through regulatory compliance and social license to operate, directly linked to the ESG activities. The company's operations involve the recycling of old mine dumps and slimes dams, which directly reverses negative ecological impacts in the surrounding landscape. The focus includes 'Improving the quality of life of communities surrounding our operations' as a strategic area. While specific financial transfers to communities aren't detailed here, the company's compliance with the Mining Charter ownership element, even after BEE partner shareholding roll-up (where Khumo and the DRDSA Empowerment Trust held nil shares at June 30, 2025), shows ongoing government/regulatory engagement.

• FY2025 Group Tonnage Throughput: 25.6 Mt.
• FY2025 Production: 4,830kg (lower than FY2024's 5,002kg).
• The company is the Johannesburg Stock Exchange's oldest company at 130 years old.

DRDGOLD Limited (DRD) - Canvas Business Model: Cost Structure

You're looking at the cost side of DRDGOLD Limited's operations, which is heavily weighted toward maintaining and expanding its large-scale processing footprint. The structure reflects the reality of surface mining: big assets mean big, non-negotiable costs.

The foundation of the cost structure involves high fixed costs tied to the sheer scale of the infrastructure and processing plants required for its operations on the East Rand and Far West Rand. These costs are inherent to the business model, which relies on processing massive volumes of old tailings material.

For the full financial year (FY) ending 30 June 2025, the total cash operating costs reached R4,372.7 million. This figure was 4% higher than the prior year, primarily driven by inflationary pressures, alongside higher consumption of reagents and consumables due to a 15% increase in Group tonnage throughput to 25.6 Mt.

The key operational cost components and their recent movements are important to track:

• Cash operating costs per tonne in the quarter ended 30 September 2025 stood at R179/t, an 8% increase quarter-on-quarter.
• Cash operating costs per kilogram of gold sold for the same quarter was R955,086/kg, a marginal 3% increase from the previous quarter.
• Cost increases in that quarter were mainly due to annual labour increases and higher reagent costs, specifically lime and cyanide, at the Ergo operation.

Significant capital expenditure is another major cost driver, reflecting the investment needed to sustain and grow the asset base, central to the Vision 2028 strategy. Total capital expenditure for the Group in FY2025 was R2,254.9 million. This is a substantial outlay, even though it represented a decrease from R2,985.7 million in FY2024.

To give you a clearer picture of where that capital is going, here is a breakdown based on the latest reported quarter (Q4 FY2025 data, which informs the full-year spend):

The high allocation to growth capital, particularly relating to the Far West Gold Recoveries (FWGR) Phase II project, which includes the construction of the Regional Tailings Storage Facility and DP2 Plant expansion, shows a commitment to future capacity, even if it inflates current period costs (All-in costs per kilogram were R1,745,213/kg, up 6% in that quarter, driven by this growth capex).

Costs for environmental rehabilitation and tailings dam maintenance are embedded within the cost structure, requiring careful estimation. The assessment of the provision for environmental rehabilitation is a key area of focus, with management adjusting estimates based on discount rates and inflation assumptions. For instance, the prior quarter's All-in sustaining costs included a credit adjustment related to the change in this rehabilitation estimate, which is assessed annually. Furthermore, the deferred tax liability calculation is directly linked to the rehabilitation provision.

Energy costs are a persistent factor, though DRDGOLD Limited has actively worked to mitigate them. The establishment of the large solar farm to supply cheaper renewable energy to Ergo has been a major cost-saving measure. The solar farm has saved the company R108 million since its commissioning in November. However, electricity costs still saw an increase in the quarter ended 30 September 2025 due to two months of Eskom winter tariffs being included. The solar infrastructure depreciation charge is estimated to be between R120 million to R150 million annually.

Finance: draft 13-week cash view by Friday.

DRDGOLD Limited (DRD) - Canvas Business Model: Revenue Streams

The primary source of income for DRDGOLD Limited is the sale of gold recovered from surface sources. Group revenue for the year ended 30 June 2025 increased by 26% to R7,878.2 million. This revenue figure is a significant step up from the FY2024 total of R6,239.7 million.

This revenue performance is intrinsically linked to the prevailing gold price in Rand terms, showing a high degree of leverage to that market factor. The average Rand gold price received during FY2025 saw a substantial increase of 31%, reaching R1,632,275/kg. This price increase was the main driver, offsetting a 16% decrease in average yield, which fell from 0.225g/t to 0.189g/t.

Here's a quick look at the key financial drivers underpinning the FY2025 revenue:

The revenue stream is also supplemented by investment returns. DRDGOLD Limited declared a final cash dividend for FY2025 of 40 South African cents per share (cps), which was double the dividend declared in FY2024. This declaration reflects the strong cash generation, which allowed for reinvestment and shareholder returns, with the company remaining debt-free at the end of FY2025. While the search results confirm the importance of the Rand Refinery investment to the overall structure, a specific dividend amount received from this investment isn't detailed here.

Looking forward, DRDGOLD Limited is actively pursuing new revenue avenues beyond its current operational base. The company is in early-stage planning to expand internationally by establishing partnerships with miners interested in mining tailings. CEO Niël Pretorius has expressed keen interest in entering new markets, such as Zambia's mining sector, as part of the Vision 2028 growth strategy.

The revenue generation model relies on several operational inputs:

• Primary revenue from gold sales.
• Revenue highly sensitive to the Rand gold price.
• Progress on Vision 2028 projects to expand throughput.
• Exploring international tailings retreatment partnerships.